False Listings Concentrated in Seocho-dong, Seoul with 222 Cases
Reports Drop After June 27 Mortgage Regulation Measures
In the first half of this year, Seocho-dong in Seocho-gu, Seoul recorded the highest number of false real estate listings.
On August 12, Yonhap News reported, citing the Real Estate Listing Clean Management Center of the Korea Internet Self-governance Organization (KISO), that out of 15,935 reports of false listings received in the first half of the year, 11,339 were confirmed to be actual false listings.
As the rise in Seoul apartment prices continues to slow for the fifth week following the announcement of the June 27 measures, a view of apartment complexes in Seoul on the 3rd. Photo by Yonhap News
By region, Seocho-dong in Seocho-gu, Seoul had the most cases with 222, while in Gyeonggi Province, Cheolsan-dong in Gwangmyeong had the highest number with 205 cases. KISO explained, "Both areas saw a surge in demand due to reconstruction and development prospects, which led to an increase in false listings."
However, after the announcement of the June 27 measures, which limited home mortgage loans to 600 million won in the Seoul metropolitan area, reports of false listings dropped sharply.
Before the announcement of the June 27 measures (from June 1 to June 26), there were 3,249 reports of false listings over 26 days (an average of 125 per day). In the 26 days after the new regulations took effect (from June 27 to July 22), the number dropped to 2,176 reports-a decrease of about 33%.
KISO interpreted this as "a result of strong regulations causing participants in the real estate market to temporarily adopt a wait-and-see approach, which led to a decline in listing searches and transaction activity," adding that "the number of false listings naturally decreased as a result."
In the first half of the year, 201 real estate agencies were sanctioned with 216 listing registration restrictions due to the detection of false listings. This measure prevents the sanctioned agencies from registering properties for a certain period on all 27 real estate platforms that have agreements with KISO (including Naver Pay Real Estate, Dabang, KB Real Estate, and others). Agencies that are sanctioned for false listings three or more times in a month, or 10 or more times in the previous three months, can be restricted from registering listings for up to six months.
Meanwhile, Gangnam-gu, which has the largest number of registered real estate agencies nationwide at 3,279, announced that it will shift its policy focus from crackdowns to encouraging voluntary improvement in order to eradicate false listings, and will launch a "Clean Brokerage Campaign."
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